Toyota has come under plenty of criticism in recent years for not making the shift to electric powertrains as quickly as some of its competitors. However, the world’s largest car manufacturer continues to invest heavily in EV technologies, doubling down on its commitment to launch new models with all-solid-state batteries in 2027-2028.

Since 2021, Toyota has been working with Japanese mining company Sumitomo Metal Mining on the cathode materials needed for solid-state batteries. These batteries, primarily composed of a cathode, anode, and solid electrolyte, have long been considered the holy grail of electric vehicles.

Smaller, Lighter, Faster

Beyond improving range, solid-state batteries are expected to be smaller, lighter, and charge faster than today’s lithium-ion packs. The technology is also said to deliver higher output and longer life.

Toyota recently signed a new agreement with Sumitomo Metal Mining to accelerate the mass production of these cathode materials, taking another step toward commercializing the technology.

Read: Toyota Partners With Japanese Petroleum Giant To Develop Solid-State Batteries For EVs

Toyota and Sumitomo say that through the use of powder synthesis technology, they have been able to develop a “highly durable cathode material” that can be mass-produced for these batteries. The collaboration builds on Sumitomo’s experience supplying cathode materials for existing EVs, now adapted to the stricter requirements of solid-state production.

It’s not just its work with Sumitomo that will allow Toyota to commercialize solid-state batteries. Since 2013, it has also been working alongside Japanese oil product Idemitsu Kosan on the new technology.

Idemitsu Kosan is developing lithium sulfide for use in batteries and plans to build a large plant capable of producing 1,000 metric tons of the material annually. Mass production is expected to start in 2027.

A previous roadmap published by Toyota indicated that its first generation of solid-state batteries launching in 2027-2028 will allow for 1,000 km (621 miles) worth of range, all while having the ability to charge from 10-80 percent in just 10 minutes.

The second generation is projected to exceed 1,200 kilometers (745 miles), signaling a substantial leap in energy density and efficiency.

In a statement, Toyota and Sumitomo said they are currently focusing on improving the “performance, quality, and safety of cathode materials for all-solid-state batteries, as well as reducing costs for mass production.” They aim to “achieve the world’s first practical use of all-solid state batteries in BEVs.”

Global Race For Solid-State Supremacy

While Toyota hopes to lead the transition, several global automakers are pursuing the same goal. BMW, Honda, Stellantis and Mercedes are investing heavily in solid-state technology, with some already testing prototype vehicles. Recently, MG launched the second-generation MG4 with semi-solid-state batteries that use around five percent liquid electrolyte.

Note: For anyone wondering, the opening image shows a pear-shaped lab flask containing a sample of solid-state battery material. Toyota included the photo in a release about its all-solid-state battery program.

Despite online jokes about the shape, it’s actually a standard scientific container used for drying and storing chemical samples during testing and production. The powder inside is cathode or electrolyte material destined for Toyota’s next-generation solid-state EV batteries.

Sales momentum keeps building for Toyota, with last month’s modest increase adding to what has already been a strong run through the first eight months of the year. At the current pace, Toyota looks set to surpass the 10.8 million vehicles it sold globally in 2024.

But a closer look at the company’s latest report uncovers some striking details, or anomalies if you will, including the fact that only 18 battery-electric vehicles were sold in its home market of Japan during August.

Read: Toyota Finally Blinks As Europe’s EV Market Closes In

The good news for Toyota is that this year, the company has sold 7,409,273 vehicles across the Toyota, Daihatsu, Hino, and Lexus brands. This represents a 6.2 percent increase over last year. That said, August growth slowed to 900,598 units, down 1.3 percent year on year. More concerning was the drop at home, where Toyota’s group sales in Japan fell 10.2 percent in August despite being up 17.8 percent across the year so far.

Excluding Daihatsu and Hino, Toyota and Lexus deliveries in Japan dropped 12.1 percent last month to 96,269 units. The slowdown has been linked to operational setbacks and delayed deliveries connected with issues in the Kamchatka Peninsula, alongside lingering fallout from a wide-ranging Prius recall last year.

Toyota’s BEV Sales

The report also highlights how Toyota and Lexus are faring with electrified models. Globally, year-to-date EV sales climbed 20.6 percent to 117,031 units. Yet in Japan, the story is very different. Sales of battery-electric vehicles collapsed by 84.9 percent in August, amounting to only 18 units. Over the first eight months, the total was just 469 BEVs in Toyota’s home market, down 71.1 percent.

This decline comes despite overall electrified vehicles in Japan rising 8.8 percent this year to 617,947 units. The vast majority of these are Toyota’s traditional hybrid models, accounting for 603,676 sales. It has then sold 13,551 plug-in hybrids in Japan this year and 251 hydrogen fuel-cell models.

Growth Abroad

Outside Japan, Toyota’s EV business is heading in the opposite direction. Global demand has strengthened, with 117,031 EVs sold this year, a solid 20.6 percent increase. August proved especially strong, with 17,056 units delivered, marking a 34.5 percent rise compared with the same month last year.

We might be living in the age of electrification, with all its highs and lows, but EV and plug-in hybrid drivers still need a shove when it comes to charging discipline. Pure battery-electrics have no choice but to plug in, yet plenty of PHEV owners treat their rides like ordinary gas cars and ignore the socket altogether, according to Toyota’s research arm. It’s baffling really; why pay extra for a PHEV only to use it as a glorified hybrid?

To address this curious habit and encourage better routines, the company has developed an app that applies behavioral science and game-like rewards, turning charging into less of a chore and more of a challenge. The Toyota Research Institute (TRI) says it works, and early findings back that up.

Shaping Better Charging Habits

Toyota explains that technology alone cannot deliver lower emissions. For BEVs and PHEVs to achieve their full environmental potential, owners must charge them consistently and, crucially, at the right times when clean energy sources are available.

More: This Toyota Prius Can Cut Emissions By Up To 90% Thanks To A Clever Trick

The smartphone application that can help reach this goal is called ChargeMinder and was developed by TRI’s Human-Centered Artificial Intelligence division. Being a prototype means it is not yet available for download from an app store, but is already delivering results in research trials.

Similar to a fitness app, ChargeMinder uses push notifications, streak tracking, and motivational messages to encourage owners to plug in at the right time. It also includes short quizzes to keep users engaged, while access to vehicle telematics and charging location data allows for more personalized suggestions.

Studies Suggest It Works

As noted by Dr. Laura Libby who works at the Toyota Research Institute, “small, targeted interventions can have a large impact on people’s decisions and actions”, adding that “behavioral interventions are inexpensive and can be deployed quickly”.

More: Diesel Is Dying And Toyota Already Picked Its Replacement

Toyota’s research arm performed “randomized controlled trials” in the US and Japan with EV drivers from 12 different brands. Findings showed that “behavioral science-based interventions significantly improved charging habits”, leading to lower carbon emissions. In short, an app that provides timely reminders and rewards good behavior can benefit both drivers’ wallets and the wider environment.

Numbers Tell The Story

The company reports that behavioral interventions increased PHEV charging by 10 percent among US drivers. At the same time, satisfaction scores climbed by 16 percent, reaching a perfect 100. In Japan, PHEV and BEV drivers shifted their charging to coincide with peak renewable energy hours by 59 percent, while also plugging in for an extra 30 minutes per day during daylight.

The next step for TRI is to expand ChargeMinder with more personalized, data-driven interventions. While Toyota hasn’t announced a public release timeline, it’s hard to imagine it won’t eventually roll it out to the world.

Toyota has launched a curious new product aimed at “various mobility services.” The Toyota e-Palette is a fully electric shuttle designed to work with autonomous driving hardware and software, and it can double as a mobile shop or service hub. After years of concepts and prototypes, the quirky EV has officially gone on sale in Japan, though its asking price may drop a few jaws.

From Concept To Reality

The project began with the e-Palette concept, which made its debut at CES in 2018. It was followed by a redesigned version, created for the 2021 Tokyo Olympic Games. Since then, Toyota has continued refining the design, culminating in the first commercially available e-Palette variant.

More: Toyota Launches Most Rugged GR Sport Land Cruiser Yet

Visually, it retains much of the original concept’s DNA. Its symmetrical, boxy silhouette, tiny wheels, and large glass panels give it a distinctly shuttle-like character. The “friendly” face is defined by round LED headlights, customizable digital signage, and a repositioned Toyota badge sitting above the bumper intake.

For production, Toyota added larger side windows and slim indicators on the windshield frame, while the rear end mirrors the front aside from red taillights and solid pillars.

Toyota

Fits Up To 17 People Inside

Unlike earlier prototypes that only offered passenger seating, the production e-Palette adds a central driving position with a yoke-style steering wheel and a steer-by-wire system. The cockpit features a central digital instrument cluster, an infotainment display on the right, another touchscreen on the left, and a fourth monitor for cabin monitoring. Essential functions are handled by physical buttons on twin control panels.

More: Toyota’s New Minivan Lets You Create A Lounge, Office Or Bedroom Inside

A low, height-adjustable floor, wide sliding doors, and a deployable ramp make access straightforward, particularly for wheelchair users and parents with strollers. Inside, four fixed seats line the rear, complemented by three side-hinged folding seats in the center. Toyota says the cabin can hold up to 17 people in total, including 12 standing, four seated, and the driver. That’s less shuttle, more party bus.

Buyers can also opt for a wheelchair lock system and a large overhead digital display, echoing public transit design. More importantly, the interior layout can be customized, transforming the EV into an entertainment pod or a pop-up store. Toyota imagines it shuttling commuters in the morning, transforming into a food truck at lunch, then acting as a sports viewing pod in the evening while charging.

Autonomous-Ready Shuttle

While earlier prototypes boasted full autonomy (with an operator for safety), the production e-Palette is currently limited to Level 2 driver assistance. However, Toyota stresses it is “capable of supporting automated driving” through optional third-party hardware and software upgrades called “Automated Driving Kit”.

More: Waymo Quietly Moves Ahead Of Tesla In The Race For Robotaxis

The automaker plans to conduct automated driving demonstrations with dealers and local governments in Japan. Their goal is to launch vehicles with Level 4 autonomous systems in the fiscal year 2027, which ends on March 30, 2028.

Fully Electric With A 160-Mile Range

The e-Palette measures 4,950 mm (194.9 in) in length, roughly the same as a Land Cruiser Prado. Where it differs is in width and height, stretching to 2,080 mm (81.9 in) wide and 2,650 mm (104.3 in) tall, giving it a much boxier footprint than the truck-based SUV. It also weighs in at a hefty 2,950 kg (6,504 lbs).

Power comes from a single electric motor delivering 201 hp (150 kW / 204 PS) and 266 Nm (196.2 lb-ft) of torque, with top speed capped at 80 km/h (50 mph). That’s a big step up from the 20 km/h (12 mph) top speed of the Olympic Games prototype.

A 72.82 kWh battery provides up to 250 km (160 miles) of range. Toyota claims the battery can charge to 80% in around 40 minutes with rapid charging, or 12 hours from a standard outlet. Furthermore, the shuttle can also serve as an emergency power source.

An Extra-Terrestrial Price

All of this sounds appealing until you get to the price. The Toyota e-Palette is listed in Japan at an eye-watering ¥29 million ($196,400) before options. This is almost double the price of the GR Supra Final Edition, surpassing even the ¥27 million ($182,800) price tag of the Century SUV flagship, making it the most expensive model in Toyota’s range.

Generous subsidies from Japan’s Ministry of the Environment can cut as much as ¥15,835,000 ($107,200) off the sticker, softening the blow. Toyota hasn’t revealed production numbers, but notes the e-Palette will be built to order, which partly explains the sky-high cost.

Initially, the model will be used in the Toyota Arena Tokyo and the surrounding areas, as well as in the futuristic Toyota Woven City in Japan. Below, you can check out videos of earlier e-Palette prototypes.

Toyota has fallen behind many of its legacy rivals in Western EV markets, but in China, it has been unveiling far more compelling zero-emission models like the bZ5 and bZ3 sedan. Its latest is the bZ7, a sleek full-size flagship sedan developed with joint-venture partner GAC and sized to go up against the Tesla Model S.

More: The Tesla Model Y Has A New Rival From Toyota That’s Half The Price

Previewed earlier this year in pre-production form and now shown in its final guise, the bZ7 is a low-slung sedan set to launch in China before the end of 2025. While we wouldn’t go as far as to call it beautiful, or even particularly attractive, its proportions and shape are way more appealing than the original bZ4X, which has since received a simpler name.

Sharp Lines, Long Body

Dominating the front fascia are lobster claw-shaped headlights and a light bar, positioned above a small blacked-out lower grille section. A flowing roofline stretches to a compact rear decklid, where interconnected taillights emphasize the car’s width. Curved door skins, flush handles, and plenty of surface sculpting finish off the look.

According to fresh data, the bZ7 measures 5,130 mm (201.9 in) long, 1,965 mm (77.3 in) wide, and 1,506 mm (59.2 in) tall, with a wheelbase of 3,020 mm (118.9 in). Those dimensions put it right in the crosshairs of the Tesla Model S, BYD Han L, and BMW i5.

The Powertrain

When previewed back in April at the Shanghai Auto Show, we didn’t know what would power the model. However, information from the Chinese Ministry of Industry and Information Technology (MIIT) has revealed it will hit the market with a lithium-iron phosphate battery from CALB-Tech that powers a single electric motor with 278 hp. We’ll have to wait a little longer until we get the full technical details, including battery capacity and driving range.

A Tech Fest

The powertrain itself has been sourced from Huawei and combines the motor, MCU, and inverter into a single integrated unit. The bZ7 also uses Huawei’s HarmonyOS cockpit and infotainment system.

Not only has Toyota worked with Huawei, but the new EV will also feature Xiaomi’s smart ecosystem, connecting the car to personal devices and smart home products from the technology giant. As such, owners will be able to control Xiaomi devices like home A/C units from the car itself.

Read: Toyota’s Flagship EV Will Be Powered By Huawei And Xiaomi Tech

More details, including pricing, are expected to be announced shortly before the electric flagship’s debut in China’s competitive EV market toward the end of the year. Toyota hasn’t confirmed plans beyond China, but it wouldn’t be surprising if the bZ7 reached select markets where large sedans still have an audience.

The automotive industry never stops moving, and the latest on Toyota proves it. The Japanese automaker is reportedly moving production of the next Lexus ES from the U.S. back to Japan. On the flip side, it’ll begin building two new electric SUVs, including one that’ll likely carry the Land Cruiser name, here in Kentucky.

More: Toyota’s Lineup Overhaul Could Include A Surprise Sedan And Electric Highlander

This shouldn’t come as a wild surprise because Toyota has hinted at an electric Land Cruiser for a few years. In addition, sedan sales are slowing in the States while crossovers and SUVs continue their trend of popularity. To that end, by focusing on building and selling SUVs in the States, rather than sedans, Toyota can also avoid tariffs on its most popular models.

EVs Based On Familiar Nameplates

According to a source familiar with the matter who spoke to Reuters, the upcoming EVs “will be based on the Land Cruiser and RAV4”. While the phrasing suggests they could be directly derived from those models, it’s also possible the source meant they may simply carry those names, even if the underlying vehicles differ.

The Land Cruiser Se concept, first shown in 2023, lines right up with an electrified version of the popluar off-roader. It was a sleek, three-row EV designed to complement the retro-inspired two-row Land Cruiser currently on sale here in the States as well as the larger 300 series model in overseas markets.

See: This Is The New Toyota FJ Cruiser You’ve Been Waiting For

Another, though less likely, candidate for the Land Cruiser name is the long-rumored compact SUV often referred to as the FJ Cruiser. Given its size, it doesn’t seem suited for a three-row layout. Regardless, reports suggest it could be offered with both electric and hybrid powertrains. Toyota teased a shadowy image of the model a couple of years ago and more recently filed patent images believed to show the production version.

RAV4 EV Could Be Key

The second model, described as a three-row RAV4-based electric SUV, may prove even more crucial for the brand’s strategy. The RAV4 is America’s third-best-selling vehicle so far this year. A family-sized EV positioned closer to the familiar RAV4 branding could give Toyota’s electric lineup the boost that the bZ4X hasn’t. If an electric RAV4 can be anywhere near as popular as the gas model, it’ll be a huge win.

Lexus Production Shifts

On the other hand, Toyota will shift production of the next-generation Lexus ES back to Japan, a move the company first hinted at in 2021. With tariffs in play, we’re not sure if the decision makes sense today, but it may also reflect Toyota reading the market and recognizing the continued decline of sedan sales. Meanwhile, production of the Lexus TX will stay in Indiana, where the same factory is also expected to increase output of the Grand Highlander.

Would you be interested in an electric RAV4 or Land Cruiser? Tell us your thoughts below!

Toyota is making a major push in Europe with a substantial investment in its Czech Republic factory, which will soon produce the company’s first battery-electric vehicle built on the continent. While Toyota has shared figures on the scale of the expansion and the money involved, it has yet to reveal anything about the EV itself.

Here’s what we do know. Toyota will invest €680 million (equal to $792 million at current exchange rates) at its factory in Kolin, expanding it from 152,000 to 173,000 square meters. Not only will this expansion include a new production line for the EV, but it also new paint and welding shops. Of the €680 million being invested, up to €64 million ($74.5 million) will be provided by the Czech Government.

Read: Toyota’s Lineup Overhaul Could Include A Surprise Sedan And Electric Highlander

Currently, the Czech factory produces the Yaris Hybrid and Aygo X and has an annual capacity of roughly 220,000 vehicles. While it’s certainly possible the EV in question could be based on the same TNGA-B architecture as the Yaris, Toyota has previously indicated that now is not the right moment to launch such a small EV, hence why it is currently focused on the C, D, and E segments.

Government Backing

The scale of the project drew praise from Czech Prime Minister Petr Fiala, who highlighted both the economic and strategic importance of the investment. “I am very glad that the Czech Republic managed to secure such a significant foreign investor as Toyota, even though other countries were also interested in this investment into electric car production,” he said.

Fiala also noted that the funding not only expands Kolín’s production capacity but also strengthens the country’s technological base, which is vital given that the automotive industry contributes about 10 percent of the nation’s GDP.

A First For Europe

Whatever shape the upcoming model takes, it will mark a milestone for Toyota as the first battery-electric vehicle it has ever produced at a European facility. For the automaker, it’s both a regional commitment and a step toward balancing its global EV strategy with Europe’s accelerating shift away from combustion engines.

According to the latest American Customer Satisfaction Index Automobile Study, Americans are becoming less satisfied with their vehicles. The overall satisfaction index dropped one point this year to 79.

Mainstream brands held steady at 79, while luxury brands slipped a point as they fell to 80. The biggest drop came from smaller brands, which are grouped into an “others” category, as they plunged 9% to 74.

More: New Car Owners Overwhelmed By Modern Technology

Jumping into specifics, Subaru was deemed the most satisfying brand with a score of 85. It was followed by Mazda and Toyota in second with 82, while Buick, GMC, and Honda tied for third at 81.

Stellantis had a dismal showing as Chrysler, Dodge, Jeep and Ram all fell. In fact, all four brands found themselves at the bottom of the list with Chrysler and Ram tied for dead last at 69.

2025 American Customer Satisfaction Index For Mainstream Brands

ACSI

Interestingly, satisfaction with most vehicle related components and experiences was largely unchanged. However, there were drops related to technology and safety. The latest study also introduced two new categories – expected future resale or trade-in value and driving distance on a full charge or full tank of gas – and consumers weren’t exactly thrilled with either, especially for EVs.

On the luxury side of the equation, Lexus was top dog with a score of 87. They were followed by Mercedes (82) as well as Cadillac and Tesla, which tied for third at 81. BMW finished last with a score of 75 and they dropped four points from 2024.

2025 American Customer Satisfaction Index For Luxury Brands

ACSI

Luxury buyers were less satisfied with a number of things including driving performance, exteriors, interiors, and technology. There were also drops in safety and dependability.

Aside from the mainstream versus luxury divide, people were less satisfied with hybrids and EVs. Hybrids fell two points to 80, while electric vehicles dropped four points to fall to 73. This stands in contrast to gas-powered models, which held steady with a satisfaction index of 80.

The American Customer Satisfaction Index noted that with 22% of borrowers opting for 84-month loans, there will likely be an increased emphasis on reliability and dependability as consumers are holding onto their vehicles for longer. Ram spotted this shift awhile ago and they recently launched a new 10-year/100,000-mile limited powertrain warranty.

ACSI

Since early 2020, American consumers have had to come to terms with a new kind of normal. Products and services are not as plentiful as we’ve grown accustomed to. Covid-19 and the occasional freak weather patterns have wreaked havoc on a number of industries in many ways, especially in terms of shortages. The restaurant industry is struggling to hire viable and reliable employees. Grocery stores are out of products, specifically goods originating from meat-packing plants. And we all know how paper products like toilet paper were hard to come by for many months. Nearly all industries are having some growing pains adapting to the unavoidable changes taking place, including automobile manufacturers.

Madisonians have noticed the dearth of new vehicles for the past several months when they pass by Smart Toyota on Odana Road. What has been a car lot brimming with options for decades has suddenly become a sort of ghost town with only a handful or so of vehicles on the lot.

“It’s a very noticeable difference,” says Smart Toyota’s sales director Justin Jackson. “We normally have 400 or more new vehicles on the lot, but since mid-April 2021 we’ve seen a steady decline in the number of New Toyotas we have on the lot. Now we only have maybe 5 to 10 new vehicles physically at the store.”

Jackson says the pandemic is partially to blame for the shortage because modern vehicles rely on computer chips which became scarce due to manufacturers reallocating them to industries other than automotive. Then, early in 2021 the issue in new vehicle manufacturing were winter storms that crippled Texas-based businesses that are critical in the manufacturing of foam for seats.

“If it’s not one thing it’s another,” says Jackson. “We’ve got the chips, but because of the power issues Texas faced in the Spring of 2021, we didn’t have enough foam padding for the seats, and today, as production ramps up, it’s supply chain and logistical issues.”

It’s Not All Doom and Gloom

Those looking to purchase a new vehicle seem to understand the slow-down in global manufacturing, Jackson says. Instead of getting upset they can’t drive off the lot with a vehicle they think is “good enough,” consumers are now more apt to customize and pre-order a vehicle specifically made to their specifications.

“It’s kind of cool how people have adapted,” says Jackson. “They might not get that prior sense of immediate gratification of new car ownership, but they get to experience something else: personalization.”

Jackson explains the process of pre-ordering has been well-received for a few reasons, one of which is the compassion the consumer feels about simple logistics as they relate to inventory issues in this day and age.

Vehicle Customization increases satisfaction

“They also really like the fact we can get them exactly what they want; from safety features and amenities, to color preference,” says Jackson. “And when their customized vehicle comes in – usually in about 45 days – they are over the moon when they see the Happy New Car Day sign bearing their name saying the car was made specifically for them. It takes ‘ownership’ to a whole new level.”

Custom Pre-Orders on the Rise

Jackson says about five percent of Smart’s new vehicle sales used to be custom ordered. Today the percentage has skyrocketed to about 50 percent of the dealership’s monthly new car sales. And, Jackson notes, when a consumer has all the customizable options at his or her disposal, no one opts for a base model in order to save a buck or two.

“Often times, though, it’s not options that are the most appealing aspect of pre-ordering,” says Jackson. “Instead, currently, there has been a surge in hybrid vehicle sales. And now in winter, AWD (all-wheel drive) vehicles will see a spike in popularity.”

If you know you are going to order a customized vehicle, Jackson says it might be best to do a little homework prior to meeting with a sales consultant.

“People take a lot of amenities for granted, but if you’re customizing, you should consider some of the following options,” he says.

Custom Pre-Order Checklist

1. Entertainment & Communications: think about your stereo system. Do you still need a CD player? How about satellite radio capability? Hands-free phone control? A video system? Navigation?
2. Comfort & Convenience: this includes upholstery, heated/cooled seats, power door locks, keyless entry, dual climate control, etc.
3. Safety: the simple rule of thumb is the more you can install, the more secure you’ll feel. If you can, opt for dual air bags, anti-lock brakes, traction control, cruise control, and parking assist systems.
4. Appearance: the most enjoyable aspect of customizing is picking out your paint, trim, and wheels.
5. Performance: what do you need to get from point A to point B in your daily life? A larger engine? Sport suspension? 4-wheel drive? Automatic transmission or stick?

Jackson says while customers are not complaining right now about having to customize and then wait for their new ride, he anticipates their patience won’t last forever. However, he also doesn’t see new vehicle inventory returning to “normal” in the immediate future, and with customer satisfaction currently at such a high level he’s not overly anxious about it.

“At this point, we do not see ‘ground stock’ (vehicles physically on the lot) back to our previously average levels before the end of the year,” he says. “That could change, but we really don’t see it happening until late 2022.”

The post Consumers Adapting to ‘New Normal’. Vehicle Customization and Pre-Ordering appeared first on Smart Toyota Blog.